How Cambodia-made products are propelling economic growth

How Cambodia-made products are propelling economic growth

The Royal Government’s fervent push to promote Cambodia-made products has a larger context. It isn’t merely profit-making; it’s quintessentially protecting the Khmer culture. It isn’t simply pocketing the economic gains, nor does it fall in any of the socio-economic parameters. It’s much more profoundly rooted in the very essence of Cambodia. It anchors the timeless Khmerism, which the government loosely relates to the ‘One Village, One Product’ (OVOP) movement. As Prime Minister Hun Manet eloquently puts it: ‘Khmer people love Khmer, Khmer people use Khmer products’. Then, there’s the other side to it. The government concurrently aims to improve living standards, revitalise rural economies, and strengthen community ownership. This socio-economic factor cannot be achieved without encouraging people to take part in producing raw materials, processing goods, and developing unique products that bring pride, recognition, and honour to their communities. Khmer Times examines how this entire process is benefiting the economy

A visit to any small store in Phnom Penh, leave aside mega malls, offers a consumer an array of choices of foreign products, much more than domestic products. There’s an overriding belief among most Cambodians that imported products are better both in terms of quality and pricing. The recent border dispute with Thailand, in a way, has come as a blessing; it helped reinforce the importance of local products.

Although the trend of using local products has been on the rise in recent years, the border dispute has boosted public interest and support for Cambodian-made products.

Apart from developing the local economy, local products help create employment opportunities and reduce imports. Support for domestic products is a positive sign of increasing domestic production and reducing imports. It also helps create jobs in rural areas, reducing the need for people to migrate to cities or abroad in search of work.

Furthermore, reducing dependence on imports helps balance trade and retain more national income in Cambodia. Many local products also reflect Khmer culture and identity, preserving traditions while promoting the nation on the international stage.

National pride

Increased consumer support can attract more investment in potential sectors and encourage manufacturers to innovate and improve product quality, according to a statement from Khmer Enterprise.

The statement emphasises that local goods are often produced with fewer chemicals and have shorter transportation distances, making them safer for both health and the environment.

Therefore, supporting Khmer products is not just an economic choice, it is a step towards national pride, sustainability and long-term development. “Consumers of local products receive high-quality products and less use of chemicals to maintain quality.”

“Therefore, for local production to increase, it does not only depend on national policies alone, but it also depends almost entirely on consumer support.”

Speaking at the closing ceremony of the Central Committee Meeting of the Union of Youth Federations of Cambodia (UYFC), in Siem Reap in late June 2025, Prime Minister Hun Manet urged all citizens to support Cambodian-made products.

He said that supporting local goods reflects the spirit of national unity and helps Cambodians overcome difficult times by diversifying the domestic market and reducing reliance on imports.

In particular, he urged citizens to support and purchase Khmer products, encouraging them to do so with a sense of nationalism.

He underlined the importance of cultivating the spirit of ‘Khmer people love Khmer, Khmer people use Khmer products’ as a source of national pride. This, he said, would contribute to the sustainability of local production and help enhance Cambodia’s national prestige and economic independence.

To support this goal, the Royal Government has launched a national policy to promote the One Village, One Product (OVOP) movement. This initiative aims to foster local development by encouraging people to take part in producing raw materials, processing goods, and developing unique products that bring pride, recognition, and honour to their communities.

Kao Kosal, Undersecretary of State of the Ministry of Commerce (MoC), has called on local producers to ensure that their products meet hygienic, quality and safety standards and encouraged Cambodian consumers to support locally produced goods.

He emphasised the importance of Cambodian producers maintaining stringent quality and safety standards. “Cambodian producers must strive to manufacture high-quality and safe products that meet hygiene standards, provide complete product information, and clearly indicate production and expiration dates.”

“These efforts aim to enhance consumer confidence domestically and internationally while contributing to national economic development.”

Consumer support

National unity and patriotism, no doubt, lead to stronger support for local products. However, sustained consumer support is critical if producers are to maintain high standards of quality and offer competitive pricing.

Seng Bunvireak, President of the Cambodia Investor Contractor Architect Association (CICAA), told Khmer Times that he fully supports the movement to promote the use of local products.

He said that one of the key missions of his association is to encourage the adoption of locally made goods, and emphasised that many Cambodian products are not inferior to those from other countries or even other continents.

“Our association produces a wide range of items such as paints, pipes, steel, metalwork, and wiring – all of which are certified by national and regional laboratories,” he said.

Recognising that the support for local products has increased in recent years, Bunvireak said it still falls short of a satisfactory level. “I urge our citizens to support Cambodian products so that local companies and factories can invest in modern machinery, reduce production costs, and compete internationally.

This would also help make prices in the local market more competitive.”

He further stressed, “In terms of quality, I can confidently say that Cambodian-made products are on par with imported goods.”

Reflecting on the period of Cambodian-Thai tensions, Bunvireak observed that national unity and patriotism often lead to stronger support for local products. However, he added that sustained consumer support is essential if producers are to maintain high standards of quality and offer competitive pricing.

“For now, we can already see that Cambodian products are acceptable in both price and quality. In fact, for large construction projects, some local materials offer the same quality as imported ones but at lower costs because they are exempt from import taxes,” he added.

Chey Tech, a socio-economic researcher, told Khmer Times that the trend of using local products has been growing year by year, and this momentum is increasing, especially amid recent tensions with Thailand, which has boosted public interest and support for Cambodian-made products.

“For me, Cambodian local products, particularly agricultural ones, are better than some imported items,” he said, adding, “As we know, agricultural products from neighbouring countries often contain high levels of chemicals. For example, Cambodian durians are free from the harmful chemicals commonly used in other countries, making them safer for consumers.”

Tech pointed out that vegetables grown by Cambodian farmers are increasingly preferred by consumers, even if they come at a higher price, because of their perceived safety and freshness.

Demand for Khmer products

To ensure long-term demand for local agricultural products, Tech emphasised the need for strong infrastructure, including reliable irrigation systems, access to affordable electricity for farming, low-cost agricultural inputs such as fertilisers and seeds, improved farming techniques, and well-organised farmer cooperatives and modern agricultural communities—initiatives actively promoted by the Ministry of Agriculture.

He added that linking farmers to markets through contract farming arrangements is essential. These contracts can give farmers the confidence to invest in production, knowing there will be stable demand and supply.

“In other sectors, such as small and medium enterprises (SMEs), there is also a need to improve technical skills and production capacity,” he said. “Access to finance and clearly defined markets will be crucial for their growth and sustainability.”

Lim Heng, Vice President of the Cambodian Chamber of Commerce (CCC), said that when Cambodia faced the issue of border closures with Thailand, a sense of nationalism emerged, an encouraging sign for the country. He believes this growing nationalism is helping to boost support for local products, which in turn allows domestic enterprises to expand.

“What we are facing is also an opportunity,” he said. “We must do everything we can to seize this moment. To encourage enterprises and local investors to be competitive and widely accepted, we have made many efforts in the past under the leadership of former Prime Minister Hun Sen. Moving forward, we will continue to implement reforms during the tenure of Prime Minister Hun Manet, to make it easier to do business and attract local investors.”

SEZs for SMEs

Heng noted that while Cambodia currently has modern agricultural communities established by the Ministry of Agriculture, Forestry and Fisheries (MAFF) and special economic zones (SEZs) for industrial factories, it still lacks a dedicated special zone for small and medium-sized enterprises (SMEs)—a community space for processing raw agricultural materials.

Heng proposed that the government consider establishing special SME zones in every province. These zones, he said, would play a critical role in collecting and purchasing agricultural products from farmers for processing. This would not only help develop the country’s agricultural processing industry but also create many jobs for local communities.

In addition, he noted that a well-established SME zone could increase the confidence of banks in providing financing to producers. “If Cambodia creates special SME zones dedicated to processing,” he said, “it will significantly promote the growth of Cambodia’s processing industry and contribute to the country’s overall economic development.”

If Cambodia establish this zone, it will succeed because it will have a physical location, government support, and also support from other commercial banks.

He further to say that the goal is to promote the processing industry at the provincial and district levels, allowing raw materials to flow directly into these zones. With Cambodia’s growing number of free trade agreements, such special processing zones are a crucial key to boosting exports and ensuring Cambodian agricultural products are 100 percent processed.

He added that once Cambodia has these SME zones, the country’s economic growth will accelerate, especially since the government has recognised agriculture as the backbone of the national economy in the post-Covid-19 context.

Khim Finan, a spokesman for Ministry of Agriculture, Forestry and Fisheries (MAFF) said in local media outlet that the most effective way to encourage general consumers to switch to local agricultural products is to ensure that these products are better in quality, cheaper in price, and more stable in supply compared to imported alternatives.

“If we can achieve this level of competitiveness, it will serve as the most powerful natural barrier to imports, no regulation would be more effective,” he said.

“If we want our citizens to support local agricultural products, the simplest and most effective strategy is to improve competitiveness. This includes reducing production costs, ensuring consistent quality, and maintaining a stable supply. However, this approach may not be suitable for every situation. In some cases, the Ministry of Agriculture must step in to develop, promote, and build capacity, especially for key products like fish. For example, the ministry has placed restrictions on fish imports to strengthen the local aquaculture sector.

Finan added that the core responsibility of the Ministry of Agriculture is to ensure national food security, which means making sure that essential products—such as rice, vegetables, and meat—are available in sufficient quantities and at affordable prices.

“That is why, as part of the fifth priority policy that the Ministry of Agriculture directly implements, we are closely monitoring the prices of these essential agricultural products. We aim to avoid sharp price increases that could burden consumers, but also prevent prices from falling too low, which could discourage farmers from continuing to produce these vital goods.”

He further added that the ministry emphasised that it is constantly monitoring the situation. “We cannot implement any policy that would undermine our primary mission of ensuring food security,” an official concluded.

It may be recalled that Mr Hun Manet has unveiled a new policy aimed at dramatically transforming Cambodia’s manufacturing sector.

The policy would be designed to encourage private sector investment in local production chains, to cut imports from abroad by 100 percent, he said at the annual meeting of the Cambodian Oknha Association in March.

He called on businesses to explore partnerships that would foster local production chains, particularly in areas that supply the export industry.

Mao Sophon, a resident of Phnom Penh, said she enjoys using Khmer products because they help create jobs and generate income for local families.

She noted that supporting local products is essential for their survival. “If everyone helps promote Khmer products, they will not disappear. But if we rely only on foreign goods, our Khmer products will gradually disappear,” she said.

“Although some Khmer products may be slightly more expensive than imported ones, they are of good quality and safe to use. Some consumer goods, like clothing, are not only beautiful but also durable.”

It may be recalled that under the policy program of the Royal Government of the 7th legislature, a clear strategy has been outlined to promote the use of Cambodian products both domestically and internationally.

This includes organising trade exhibitions at home and abroad, supporting the private sector in establishing chambers of commerce in capitals and provinces, as well as overseas. Additionally, the government encourages the formation of professional and product-based associations to strengthen the supply chain and seize trade opportunities.

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